Global analytics tech provider Verisk announced it has requested a review of its wildfire catastrophe model by the California Department of Insurance (CDI).

This follows California Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy, which includes allowing the use of catastrophe models by insurance carriers as a tool for assessing catastrophic risk.

Verisk is the first to submit a model after the regulation went into effect on January 2, 2025.

The U.S. wildfire model incorporates wildfire hazard and vulnerability data as well as recent trends in variables that impact the extent of wildfire risk in the Western United States, including California, where more than 391,000 acres burned in wildfires in 2023 alone.

The newly established pre-application required information determination (PRID) process allows the CDI to examine model integrity and ensure public review and compliance with Proposition 103.

“We’re proud to be the first catastrophe modeler to work with the California Department of Insurance to offer a modeled assessment of wildfire risk and to help bring stability to the insurance market,” said Rob Newbold, president of Extreme Event Solutions at Verisk. “This is a pivotal moment for California’s insurance market, one that promises improved resilience and stability for providers and potential insureds.”